Gasoline Near Lowest in 3 Months

US gasoline prices held below $2.90 per gallon, the lowest since early March, as the US-Iran deal is expected to reopen the Strait of Hormuz and support a return of energy exports from the Middle East. The interim pact, due to be signed on Friday, states that Tehran would receive broad financial incentives, including the immediate right to sell its oil. Still, markets are assessing the durability of the agreement and the timeline for shipping through the Strait to normalize, as many operators may wait several weeks before resuming tanker transits. Producers have also warned that a full recovery could take months, citing technical and geological constraints as well as infrastructure damage. Meanwhile, industry data showed that gasoline inventories rose by 2.48 million barrels in mid-June, reversing the previous week's 1.19 million-barrel decline.

US gasoline prices declined to about $2.90 per gallon, the lowest since April 17, after the US and Iran had reached a peace deal that could gradually normalize Middle East energy exports. President Donald Trump said on social media the deal was “now complete,” with the Strait of Hormuz to reopen without transit fees and the Iran blockade lifted once signed on June 19. Iranian Deputy Foreign Minister Kazem Gharibabadi also confirmed an agreement had been reached but said details would remain confidential until the signing ceremony. While the deal has eased supply concerns for Gulf producers and shippers, key hurdles remain before flows through Hormuz can fully resume, including mine clearance and uncertainty over Iran’s plans to tighten control over shipping. Producers also warned that full recovery could take months due to technical and geological challenges and infrastructure damage.

US gasoline prices dropped below $3 per gallon, extending losses from the previous session, weighed by hopes that the US and Iran are nearing a peace agreement that could end the war. Iran’s semi-official Mehr News Agency reported that a 14-point draft agreement between the US and Iran includes provisions for the lifting of oil sanctions, although the proposal still requires approval from Iranian authorities. Separately, US President Donald Trump said a peace deal with Iran could be signed as soon as the weekend. The developments eased tensions following a recent military escalation and revived hopes that the Strait of Hormuz, which handles around one-fifth of global LNG flows, could gradually reopen. Meanwhile, EIA data showed gasoline inventories rose by nearly 0.2 million barrels in the first week of June, defying expectations of a 0.5 million barrel draw.